Why You Need a Will (and What Happens If You Don't Have One)

A will is one of the simplest ways to make sure your wishes, not a default rule, decide what happens to the things you leave behind.

Thinking about a will can feel uncomfortable. It means picturing a time when you are no longer here. But a will is less about death and more about care. It is a way to make things easier for the people you love and to make sure your choices are followed.

This guide covers the basics: what a will does, what happens without one and the steps many people take to get one in place.

Please note: This article is general education, not legal advice. Laws about wills differ from state to state. For advice about your own situation, consider talking with a licensed estate planning attorney in your state.

What a will does

A will is a legal document that says how your estate should be handled after you die. Your estate is everything you own, such as money, a home, a car, personal belongings and investments. According to the National Institute on Aging, a will spells out how your property, money and other assets will be distributed and managed when you die.

A will can also do several other important jobs:

• Name an executor. The American Bar Association (ABA) defines an executor as the person named in a will and appointed by the court to carry out its terms and manage the estate. This person pays final bills, gathers assets and hands them out as the will directs. Some legal documents call this role a "personal representative."
• Name a guardian for minor children. If you are the surviving parent of minor children, the ABA notes a will lets you name who you want to raise them, which can reduce court involvement in those choices.
• Leave specific items to specific people. A wedding ring to a granddaughter, a toolbox to a nephew, a gift to a favorite charity.
• Share other wishes. The National Institute on Aging notes a will can address care for dependents, pets and funeral arrangements.

What happens if you do not have a will

When someone dies without a valid will, the legal term is "intestate." The ABA explains that in that case, your state's laws decide who receives your property. These laws usually favor a spouse and children first, then other relatives.

That might sound fine, but the default rules may not match what you would have chosen. For example:

• An unmarried partner or a close friend may receive nothing.
• A stepchild you raised may not be included.
• A charity you care about may not receive a gift.
• A court, not you, may decide who becomes guardian of your minor children.
• Someone other than the person you would have picked may end up managing the estate.

Dying without a will can also add stress for your family at an already hard time. They may need to sort out who is in charge and who gets what without any written guidance from you.

Some assets skip the will entirely

Here is a detail that surprises many people. Some of your money does not pass through your will at all. The ABA lists several kinds of assets that go straight to the people you named, no matter what your will says:

• Retirement accounts, such as 401(k)s and IRAs, which pass to the beneficiaries you listed with the plan
• Life insurance, which pays the named beneficiary
• Payable-on-death (POD) bank accounts
• Property owned jointly "with rights of survivorship," which passes to the surviving owner

A beneficiary is the person you name to receive money or property. Because these designations generally win out over your will, it is worth checking them regularly. An old form could still name an ex-spouse or someone who has passed away. The ABA calls reviewing beneficiary designations a critical part of estate planning.

Probate: what it is and why it matters

Probate is the court process that follows many deaths. The ABA defines it as the court-supervised process of proving that a will is valid and distributing property under the will, or under state law if there is no will.

Probate can take time and may involve court costs and legal fees. The process varies a lot by state. A clear, properly signed will does not always avoid probate, but it can make the process smoother because the court and your family know your wishes and who you chose as executor.

Some people also use a living trust. The National Institute on Aging describes a living trust as a document that names a person, called the trustee, to hold and distribute property and funds for you. A trust can work alongside a will. An attorney can explain whether it makes sense for you.

How to get a will in place

Creating a will is often simpler than people expect. Here are common steps:

1. List what you own and owe. Write down bank accounts, retirement accounts, property, vehicles, insurance and debts.
2. Decide who gets what. Think about family, friends and any charities you want to include.
3. Choose your executor. Pick someone you trust who is organized and willing to take on the job. Ask them first.
4. Choose a guardian, if you have minor children. Talk with that person before naming them, and consider a backup.
5. Pick how to create it. Options include working with an estate planning attorney, using a legal aid office or using a do-it-yourself tool. If your situation is complex, such as a blended family, a business or property in more than one state, professional help may be worth the cost.
6. Sign it correctly. The ABA notes wills must follow formal rules, including witness signatures, and these rules vary by state. In many states, a will signed in front of witnesses with the signatures notarized is considered "self-proving," which can make probate easier.
7. Store it safely and tell someone. The National Institute on Aging suggests keeping important papers in a safe place, such as a fireproof and waterproof safe, and telling someone you trust, or your lawyer, where to find them.

Keep it up to date

A will is not a one-time task. Consider reviewing yours every few years and after big life events, such as marriage, divorce, a new child or grandchild, a death in the family, a move to another state or a large change in your finances.

Small changes can be made with a codicil. The ABA defines a codicil as a formally signed document that amends a will without rewriting the whole thing. A codicil generally must follow the same signing rules as the original will. For bigger changes, a new will may be clearer.

While you are at it, consider the related documents the National Institute on Aging mentions, like a power of attorney and advance directives. These cover decisions about money and medical care if you are alive but unable to speak for yourself.

This article is for education only and is not financial advice or legal advice. Everyone's situation is different.